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biz.yahoo.com
Tuesday October 19, 4:01 pm Eastern Time
Company Press Release
Applix Announces Third Quarter Revenues of $14.6 Million
and EPS of $0.07 Per Share
Front Office Business Application Revenues Increase 40%
WESTBORO, Mass.--(BUSINESS WIRE)--Oct. 19, 1999-- Net Income Increases 368%
Applix, Inc. (NASDAQ:APLX - news), today announced its results for the third quarter ended September 30, 1999. Revenues
increased 21% to $14.6 million compared to $12.0 million for the quarter ended September 30, 1998. Net income for the
third quarter of 1999 was $847,000, or $0.07 per diluted share, representing a 368% increase from a net income of $181,000,
or $0.02 per diluted share, for the same period in 1998.
Revenues for the nine months ended September 30, 1999 were $41.7 million compared to $36.9 million for the same period
in 1998, representing an increase of 13%. Net income for the nine months ended September 30, 1999 was $1.9 million, or
$0.16 per diluted share, compared to net income of $578,000, or $0.05 per diluted share, for the same period in 1998. The
attached schedule provides comparative financial highlights for the three and nine month periods ending September 30, 1999
and September 30, 1998.
``We are pleased with the overall results for the quarter,' commented Jit Saxena, Chairman and Chief Executive Officer.
``Our Front Office Business Application (FOBA) revenues increased 40% over last year's third quarter. Our customer
relationship management (CRM) products with its integrated analytics are well suited for the emerging e-commerce
applications market. We are beginning to see the benefits of this strategy. During the quarter, we were successful in expanding
our North America channels through alliances with Breakaway Solutions, Inc. and Global Technology Partners. We expect to
continue to expand our channel partners in the fourth quarter. We also announced our first two customers for our integrated
CRM analytics product, iCustomerInsight, with Cerulean Technologies, Inc. and SS&C Technologies, Inc.'
Mr. Saxena added, ``We also continue to see strong growth in the Linux applications market. During the quarter, we
introduced Version 4.4.2 of Applixware and other new Linux application offerings including WebInsight, which allows
customers to measure the effectiveness of their Internet and Intranet web site traffic using comprehensive analytics. We also
announced several strategic alliances including a distribution agreement with Caldera Systems, an expansion of our Linux
retail channel through Frontline Now!, and a partnership with 3Com for their Palm Computing Platform.'
About Applix, Inc.
Applix, Inc. (NASDAQ:APLX - news), headquartered in Westboro, Mass., develops, markets and supports web-based, front
office business solutions, which allow organizations to improve decision-making and corporate productivity. The Front
Office Business Solutions include a suite of thin-client Customer Relationship Management (CRM) applications, which
include the Applix Enterprise and Enterprise Anyware product lines, and a set of real-time Business Intelligence
applications, which include the Applix TM1 product line. In addition to its Front Office Business Solutions, Applix's Linux
Division is a leading provider of productivity and analytic applications for the Linux, UNIX and Microsoft platforms.
Applixware Office is a leading office suite designed for and integrated with the Linux and UNIX environments. Applix
SHELF is an open source application development and deployment system. With Applix Anyware, applications are deployed
to any standard web browser using Java. Smartbeak.com is Applix's Linux customer support and collaboration web site.
More information can be found at applix.com and linux.applixware.com
Notes to Investors:
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially.
Specifically, comments related to the demand for, revenue from and acceptance of the Company's products and the Company's
position in the markets, may be considered forward-looking and subject to a number of risks and uncertainties, including but
not limited to: the rate of growth in market demand for the products; the acceptance of the Company's products; intense
competitive conditions; rapid technological change; frequent new product introductions and evolving domestic and
international standards, which may render existing products and services obsolete. Refer to the Company's Form 10-K for the
year ended December 31, 1998 for a list of factors as discussed under ``Risk Factors '. Applix does not undertake - and
specifically declines any obligation - to publicly update any forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of anticipated or unanticipated events.
All trademarks, registered trademarks, and service marks are the property of their respective owners.
-0-
Applix, Inc.
Consolidated Statement of Operations
(In thousands, except per share data)
Three Months Ended Nine Months Ended
------------------ -----------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
License revenue $ 8,359 $ 7,708 $24,387 $24,859
Service revenue 6,207 4,306 17,276 12,057
------- ------- ------- -------
Total revenue 14,566 12,014 41,663 36,916
Cost of license revenue 573 811 1,623 2,177
Cost of service revenue 3,441 2,025 9,658 6,025
------- ------- ------- -------
Gross margin 10,522 9,178 30,382 28,714
Operating expenses:
Selling and marketing 5,906 6,210 17,415 19,147
Research and development 2,516 2,084 7,233 6,629
General and administrative 1,089 831 3,519 2,775
------- ------- ------- -------
Total operating expenses 9,511 9,125 28,167 28,551
------- ------- ------- -------
Operating income 1,041 53 2,215 163
Interest income (net) 304 235 795 757
------- ------- ------- -------
Net income before income taxes 1,345 288 3,010 920
Provision for income taxes 498 107 1,113 342
------- ------- ------- -------
Net income $ 847 $ 181 $ 1,897 $ 578
======= ======= ======= -------
Basic earnings per share $ 0.08 $ 0.02 $ 0.18 $ 0.06
======= ======= ======= -------
Diluted earnings per share $ 0.07 $ 0.02 $ 0.16 $ 0.05
======= ======= ======= -------
Weighted average common
and common equivalent
shares outstanding:
Basic 10,660 10,225 10,535 10,168
======= ======= ======= -------
Diluted 12,288 10,292 11,707 10,679
======= ======= ======= -------
Balance Sheet Highlights:
Sept., 99 June, 99 Dec., 98
Cash, Cash Equivalents
and Short-term Investments $27,867 $24,519 $21,445
Total Current Assets 46,063 42,969 40,904
Total Assets 50,287 47,303 45,613
Total Liabilities 17,042 16,128 16,038
Shareholders' Equity 33,245 31,175 29,575
Contact:
Applix, Inc.
Edward Terino
Senior Vice President and CFO
508-870-0300 Ext. 396
eterino@applix.com |
